Urban Warehousing: Is It an Opportunity in Last Mile Logistics?

So—you want to SELL something?

Although many question “is retail is dead?” in light of massive retail store closings (2,280 have been announced so far this year, compared to 1,153 in same period 2016 according to Bloomberg), what is clear is that retail is ceding ground to e-commerce. Rents are softening and the number of vacant storefronts is rising.

The implications of increasing e-commerce sales compels the evaluation of alternative infrastructures and distribution models in order to accommodate and capitalize on this shift in shopping behavior.

Consider the myriad ways in which the convergence of diverse, seemingly disparate trends can be orchestrated in such a way as to maximize portfolio value to urban landlords and create new opportunities for servicing the ecommerce shopping model by developing urban warehouses which minimize the cost of the “last mile” and address the operational shifts needed to support ecommerce transactions ongoingly.

Tyga Hard at Work

Some of the trends, I believe, are worthy of consideration and in no specific order of priority are: a) automation of warehouse functions, b) increasing use of robots, c) possible growth of delivery drones, d) continued growth of e-commerce; e) e-commerce FREE shipping and return policies, f) returns restocking issues, g) energy conservation (building level), h) fuel conservation (logistics level), i) projected increases in urban population density, j) need for cost-effective, resource-efficient distribution systems design, k) AI, l) IoT, m) VR and n) big data analytics.


-Nadine Cino, Tyga’s CEO and co-Inventor, is a regular contributor to the NYREJ. She enjoys sharing her thoughts and expertise on topics ranging from entrepreneurship, business and systems management, and product development to sustainability, technology, and responsive innovative design.

**Article below originally published in NYREJ.